More firms from Tamil Nadu foray into warehousing space
Beyond Chennai, tier-2 and tier-3 towns are also experiencing rising interest in warehousing facilities. And recognising this burgeoning potential, the Tamil Nadu government has announced plans to introduce a dedicated Warehousing Policy, aimed at fostering infrastructure development and attracting investment in the sector.
Chennai-based DRA is entering the Grade A warehousing and industrial development space with a focused strategy anchored in Chennai. 'Our first project is coming up in Mappedu, a key logistics node near the upcoming dry port and well-connected to the Chennai–Bangalore Industrial Corridor and Chennai and Ennore Ports. Spread across 12 acres, this project will deliver 3 lakh sq.ft of high-quality warehousing infrastructure, with an investment of ₹100 crore,' said Ranjeeth Rathod, Managing Director of DRA. 'We aim to develop 1.5 million sq.ft of warehousing space in Chennai by 2028,' he added.
A well-established corporate firm from Chennai, with a presence spanning several decades, has announced plans to diversify into the warehousing sector. Armed with a valuable land parcel, the company is attracted by the growing demand, particularly from the electronics industry in the Sriperumbudur belt, which has generated numerous inquiries, a top head from the company said requesting not to reveal the name until the firm completes approval procedures.
'Many of the leading developer and funds are currently engaged in Tamil Nadu's warehousing market. We have been seeing an increasing trend of corporates venturing into the warehousing sector. The reason is that Tamil Nadu has been a manufacturing base and many corporates historically having expertise in manufacturing. Many of these groups are now exploring Logistics and Industrial Park Development,' Jerry Kingsley, Head, Value and Risk Advisory India and City Lead - Capital Markets, Chennai, said.
According to Vimal Nadar, National Director and Head, Research, Colliers India, the demand for Grade A industrial and warehousing spaces has been gaining traction in Tamil Nadu, especially in Chennai and other major cities such as Hosur, Krishnagiri, Dharmapuri, Thoothukudi and Coimbatore. 'Since 2021, Chennai has witnessed nearly 20 million sq.ft of leasing activity, primarily driven by third-party logistics players and engineering firms. Grade A space uptake in the city was particularly impressive during the first quarter of 2025 at 2 million sq.ft, almost thrice of the demand in the preceding quarter,' he added.
Trends in warehousing
Firms like TVS ILP, which has been into this space for a long time, say that Tamil Nadu's warehousing sector is evolving rapidly—from conventional godowns to Grade A, compliance-led infrastructure.
Arul Murugan, Head – Projects, TVS ILP, explained: 'What's interesting is the growing demand for plug-and-play facilities with built-in automation support, especially from sectors like EV manufacturing and electronics. Another major trend is the decentralization of supply chains.' With Tier 2 and Tier 3 cities becoming consumption engines, brands are looking for facilities closer to these markets, he added.
Tamil Nadu has been a core market for TVS ILP with eight industrial and logistics parks spanning up to 7 million sq. ft. across Chennai, Hosur, Coimbatore, and Madurai. Each of these locations have been chosen for their proximity to industrial hubs and connectivity to nearest ports, airports, highways, railways, and industrial corridors offering seamless logistics and reduced transit time.
'For instance, our three facilities in Hosur alone contribute to over 2.8 million sq.ft of warehousing space, supporting a strong base of automotive and electronics clients. In Chennai, our parks in Oragadam, Sriperumbudur, Kancheepuram and Red Hills serve both manufacturing and urban consumption zones. Coimbatore and Madurai are fast emerging as regional distribution centres, especially for FMCG and quick commerce,' Mr.Murugan said.
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